05 06 Tutor Resource Strategic HRM CH 2

THE CLOUDY NATURE OF STRATEGY
Strategy is
problem solving in
unstructured
situations.
Lester Dignam
There is a gap
between the
rhetoric and the
reality of
SHRM.
John Purcell
Lynda Grattan
Strategy is
Strategy is a
emergent and
flexible.
pattern in a
stream of
activities.
Sean Tyson
Strategy consists
of illusions in the
board room.
Henry Mintzberg
Strategy is often
fragmentary,
evolutionary and
largely intuitive.
James Quinn
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Resources.
STRATEGIC HRM DEFINED
Strategic HRM is the process of

defining how the organizations goals
will be achieved through people by
means of HR strategies and
integrated HR policies and practices.
Resources.
MODEL OF STRATEGIC HRM

Strategic HRM
Strategic management
strategic role of HR
HR strategies
overall/specific
Strategic choice
Strategic analysis
Resources.
VIEWS ON THE STRATEGIC BUSINESS PARTNER CONCEPT

My credibility depends on
running an extremely
efficient and cost-effective
administrative machine
If I dont get that right, and
consistently, then you can
forget about any big ideas.
HR Director
Give me a break! Its so demeaning.

How many people in marketing or
finance have to say they are a
partner in the business? Why do we
have to think that were not an
intimate part of the business, just
like sales, manufacturing and
engineering? I detest and loathe the
term and I wont use it.
Tim Miller, Standard Chartered Bank
The CIP thinks that we will all

be strategic business
partners, and were not, you
know. We have to deal with
day-to-day HR issues that
arise in the business.
Student practitioner
The term worries me to death. HR has to be

an integral and fundamental part of
developing the strategy of the business. I
dont even like the term close to the
business because, like business partner, it
implies we are working alongside our line
management colleagues but on a separate
track, rather than people management being
an integral part of the business.
Alex Wilson, BT
Resources.
HRs STRATEGIC ROLES
Formulate integrated
HR strategies
Contribute to the
development of
business strategies
Work with line

managers to
support the
achievement of
their business
goals
Resources.
SEVEN STEPS TO BEING STRATEGIC
Aware of
business
context
Understand
the
business
Appreciate
how HR
can add
value
See the big

picture
Act as
change
agent
Practice
evidenceMake
based
convincing
business management
case
for
innovation
Resources.
SO WHAT ABOUT HR STRATEGY?
Resources.
HR STRATEGY AREAS
Overall:
performance
engagement
the big idea
human capital
advantage
HRM process
advantage
etc
Specific:
organization
development
corporate social
responsibility
resourcing
talent management
learning and
development
employee reward
employee
relations
employee
well-being
Resources.
EXAMPLES OF OVERALL HR STRATEGIES
A strong focus on the

overall effectiveness
of the organization, its
direction and how it's
performing. There is
commitment to, belief
in, and respect for
individuals. New
Forest Council
The only HR strategy

you really need is the
tangible expression of
values and the
implementation of
values. West Water
Maintain
competitive
advantage by
continuing to
attract very high
calibre people.
Boots
Stimulate changes
on a broad front
aimed at achieving
competitive
advantage through
people. Pilkington
Optronics
We want GSK to be a
place where the best
people do their best
work. GlaxoSmithKline
Staff who are enjoying

themselves, are being
supported and
developed, and who
feel fulfilled and
respected at work, will
provide the best
service to customers.
Lands End
Resources.
BALANCED SCORECARD IN AN INTERNATIONAL CHARITY

Organizational effectiveness
perspective:
programme development
programme delivery
process development and
management
cost-effectiveness
Financial perspective:
income growth
enlistment and retention of
supporters
cost/income ratio
Stakeholder perspective:
impact on clients
relationships with key funding
agencies and supporters
development of brand
influence
People perspective:
leadership behaviour
talent management
learning and development
employee satisfaction
a great place to work
Resources.
HIGH-PERFORMANCE STRATEGY:
CORPORATION OF LONDON
Clear line of sight between strategic aims of the Corporation and its staff
Management sets goals for success and monitors performance
Leadership from the top and at all levels of management
Focus on promoting engagement and commitment
Performance management processes aligned to Corporation objectives
Capacities of people enhanced by comprehensive learning and
development programmes
People valued and rewarded according to their contribution
Resources.
DECLARATION OF STRATEGIC INTENT:

DELIVERY CHARITY
CARE
Achieve strategic integration match HR

policies and practices to the business
strategy
Plan coherent approaches to the
development of HR processes so that
they are interrelated and mutually
supporting
Focus on the needs to achieve flexibility,
responsiveness, quality and costeffectiveness in the delivery of HR
services
Resources.
CRITERIA FOR HR STRATEGIES
Aligned to corporate goals

Set out clear aims
Supported by business case
Take account of individual as well as
business needs
Contain realistic and achievable
plans for implementation
Resources.
STRATEGIC HRM TOOLKIT
Resources.
CONDUCTING A STRATEGIC REVIEW
Involve senior
management and
line managers
1.
Analysis
2.
Diagnosis
3.
Conclusions and
recommendations
4.
Action planning
Involve employees
and their
representatives
Resources.
HR STRATEGY GOALS: HOW DO THEY RATE?

Possible HR strategic objectives
Importance*
Effectiveness*
Support the achievement of organizational goals

Meet needs of employees
Develop a high-performance culture
Ensure that the organization is seen as a great place to work
Increase engagement and commitment
Recruit and retain talented people
Develop talented people
Reward people according to their contribution
Provide employees with a voice
Provide a good working environment
Other (specify)
* Scale: 10 = high 0 = low

Resources.
STRATEGIC HRM GAP ANALYSIS

What are the current and desired SHRM characteristics in your organization?
1
Effective high-performance work

system in place
No attempt made to encourage

high performance
Integrated talent management

programmes are operating
effectively
Talent management is haphazard

or ineffective
Sophisticated techniques are

used to recruit employees
A traditional approach is adopted

with regard to sourcing recruits
and selecting applicants
Focus on using blended learning

and development processes
Reliance on the delivery of

traditional training courses
A total reward approach is used

effectively
Reward programmes limited to

financial rewards
Only lip service is paid to

employee participation and
involvement
Employees given a voice on all

matters that concern them
Mark on the scale: X for current, O for desired eg:
High-quality HR practices
Poor-quality HR practices
HR IMPLICATIONS OF CORPORATE STRATEGIES

Corporate strategy
Implications for HR strategy
1.
2.
3.
4.
5.
6.
Resources.
ANALYSIS OF RESOURCING GOALS

Possible resourcing goals
Importance*
Effectiveness*
Match people resources to business requirements

Avoid unexpected deficits or surpluses of staff
Attract and recruit high-quality candidates
Minimize recruitment costs
Maximize recruitment intensity, ie high numbers of applicants
per vacancy
Increase predictive validity, ie the extent to which predictions of
suitability at the point of recruitment are achieved
Increase retention rates
Reduce cost of labour turnover
* Scale: 10 = high, 0 = low
Resources.
ANALYSIS OF TALENT MANAGEMENT GOALS

Talent management goals
Importance*
Effectiveness*
Define what is meant by talent in terms of competencies

and potential
Ensure that talent is treated as a key corporate resource
Develop a pool of talent that will provide a guaranteed
supply of highly qualified people
Provide for management succession
Rely primarily on growth from within, while recognizing
the need to bring in fresh blood from time to time
Identify those with talent and potential
Institute programmes to develop talent
Create a compelling employee value proposition
Develop the organization as an employer of choice
Resources.
ANALYSIS OF LEARNING AND DEVELOPMENT GOALS

Learning and development goals
Importance*
Effectiveness*
Create human capital advantage by ensuring that the

organization has more skilled and competent people
than its competitors
Extend the skills base of the organization
Improve individual, team and organizational
performance
Attract and retain high-quality people by offering them
learning and development opportunities
Improve organizational flexibility by multi-skilling
Provide additional non-financial reward to people in
the form of growth and career opportunities
Reduce the length of learning curves to minimize
learning costs
Ensure that talented people are developed to achieve
their maximum potential
Provide line managers with the skills required to lead
and develop their people
Resources.
ANALYSIS OF REWARD MANAGEMENT GOALS

Reward management goals
Importance*
Effectiveness*
Reinforce the achievement of organizational goals

Improve individual, team and organizational
performance
Recruit and retain high-calibre staff
Facilitate staff mobility
Achieve strong relationship between pay and
performance
Reinforce organizational values
Motivate and engage employees
Cost effective
Well-communicated and understood by employees
Managed effectively by line managers
Resources.
ANALYSIS OF EMPLOYEE RELATIONS GOALS

Employee relations goals
Importance*
Effectiveness*
Build stable and cooperative relationships with employees

and, where present, their trade unions
Operate on a partnership basis with trade unions
Achieve engagement through employee involvement and
communication processes
Minimize conflict with employees and their unions
Adopt a high-commitment approach to develop mutuality
Maintain bargaining structures and negotiating procedures
that enable agreements to be reached smoothly

Resources.
PRIORITIZATION OF HR STRATEGIES
Summary of HR
strategy
Business case
Timing
Responsibility for
1.
2.
3.
4.
5.
6.
Resources.
STRATEGIC HRM GUIDELINES

Be clear on what has to be achieved
and why
Ensure that what you do fits the
business strategy, culture and
circumstances of the organization
Aim for continuous improvement
evolution not revolution
Dont follow fashion do your own
thing
Keep it simple over-complexity is a
common reason for failure
Dont rush it takes longer than you
think
Assess resource requirements and
costs
Manage change involve,
communicate and train
Resources.
Michael Armstrong
email@michael-armstrong.eu
Art work by Youngs Design

Ian@youngsdesign.co.uk
Resources.

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THE CLOUDY NATURE OF STRATEGY

STRATEGIC HRM DEFINED

Strategic HRM is the process of

MODEL OF STRATEGIC HRM

VIEWS ON THE STRATEGIC BUSINESS PARTNER CONCEPT

Give me a break! Its so demeaning.

The CIP thinks that we will all

The term worries me to death. HR has to be

HRs STRATEGIC ROLES

Work with line

SEVEN STEPS TO BEING STRATEGIC

See the big

SO WHAT ABOUT HR STRATEGY?

EXAMPLES OF OVERALL HR STRATEGIES

A strong focus on the

The only HR strategy

Staff who are enjoying

BALANCED SCORECARD IN AN INTERNATIONAL CHARITY

DECLARATION OF STRATEGIC INTENT:

Achieve strategic integration match HR

CRITERIA FOR HR STRATEGIES

Aligned to corporate goals

STRATEGIC HRM TOOLKIT

CONDUCTING A STRATEGIC REVIEW

HR STRATEGY GOALS: HOW DO THEY RATE?

Support the achievement of organizational goals

* Scale: 10 = high 0 = low

STRATEGIC HRM GAP ANALYSIS

Effective high-performance work

No attempt made to encourage

Integrated talent management

Talent management is haphazard

Sophisticated techniques are

A traditional approach is adopted

Focus on using blended learning

Reliance on the delivery of

A total reward approach is used

Reward programmes limited to

Only lip service is paid to

Employees given a voice on all

Mark on the scale: X for current, O for desired eg:

HR IMPLICATIONS OF CORPORATE STRATEGIES

Implications for HR strategy

ANALYSIS OF RESOURCING GOALS

Match people resources to business requirements

* Scale: 10 = high, 0 = low

ANALYSIS OF TALENT MANAGEMENT GOALS

Define what is meant by talent in terms of competencies

ANALYSIS OF LEARNING AND DEVELOPMENT GOALS

Create human capital advantage by ensuring that the

ANALYSIS OF REWARD MANAGEMENT GOALS

Reinforce the achievement of organizational goals

ANALYSIS OF EMPLOYEE RELATIONS GOALS

Build stable and cooperative relationships with employees

* Scale: 10 = high, 0 = low

STRATEGIC HRM GUIDELINES

Art work by Youngs Design

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